New Delhi, Sep 3: India’s plan to build a domestic rare earth permanent magnet industry has gained significant momentum, with 20 companies submitting bids to establish integrated manufacturing facilities in the country.
The strong industry response signals growing interest in developing local capabilities for producing rare earth permanent magnets, which are increasingly important for electric vehicles, renewable energy, electronics, aerospace and defence.
The Ministry of Heavy Industries opened technical bids on August 13 after inviting proposals under its scheme to promote the manufacturing of sintered neodymium-iron-boron (NdFeB) rare earth permanent magnets. Companies from diverse sectors have participated, including Larsen & Toubro, Coal India, ReNew, Attero Recycling, Lohum Magnets & Energy Solutions, NEO Performance Materials and Proterial India.
The government aims to establish an integrated manufacturing capacity of 6,000 metric tonnes per annum through the scheme. Up to five companies will be selected, with each beneficiary eligible for a maximum capacity of 1,200 tonnes per annum.
The initiative is designed to develop the entire production chain in India, from neodymium-praseodymium (NdPr) oxide to finished magnets. This could help reduce dependence on overseas supplies and create a stronger domestic ecosystem for critical technologies.
Rare earth magnets are essential components in several modern industries. Their use in electric vehicle motors, wind turbines, advanced electronics, aerospace equipment and defence systems makes reliable access to these materials increasingly important for India’s manufacturing ambitions.
The scheme, approved by the Union Cabinet with a financial outlay of Rs 7,280 crore, combines capital support with sales-linked incentives to encourage companies to invest in domestic production.
The latest response from industry is being seen as an important step in India’s broader effort to strengthen critical-mineral supply chains and move beyond raw-material extraction towards value-added manufacturing.
By developing domestic expertise in rare earth processing and magnet production, the initiative could support new investments, strengthen supply chains and help Indian industries become more resilient in the years ahead.